Tax Preparation Business Strategy

  • Tax Treatment of Dependents is a Different World Now

    The passage of the Tax Cut and Jobs Act in December, 2017 marked a sea change in how dependents are treated on the average Form 1040. The new law eliminates exemptions for dependents starting in tax year 2018 through 2025. The exemptions were replaced by a larger standard deduction, which ballooned from $6,350 to $12,000…

  • IRS Says New 1040 to use “Building Block Approach”

    New form confirmed replacement for the Forms 1040, 1040A, and 1040EZ Last week, draft copies of the new Form 1040 that is also rumored to be a replacement for the 1040A and 1040EZ began circulating. By the end of the week, the IRS confirmed several rumors when it issued a press release outlining the pending…

  • Postcard-Sized Form 1040 Rumored to Replace 1040A and 1040EZ

    While Treasury Secretary Mnuchin teased the imminent release of the administration’s newly resurrected promise of a postcard-sized Form 1040 last Thursday, a leak seems to have stolen some of his thunder. Namely, it’s rumored that the new Form 1040 is expected to also replace the 1040A and 1040EZ. What do we know about the new…

  • IRS Announces New Tax Exempt Organization Search Tool

    There’s an Easier Way to Check Tax-Exempt Organization Info Fake charities aren’t a new development—they were once again featured in the IRS “Dirty Dozen”—but they remain an effective way for criminals to get their hands on taxpayer money. In a move that should help sort the wheat from the chaff, the IRS on Monday announced a…

  • Time Running Short to File 2014 Returns for Refund

    The Internal Revenue Service is reminding taxpayers that time is short to file their 2014 income tax return for a refund. Some $1 billion in refunds is yet unclaimed from TY2014. In order to claim a refund due, taxpayers must file their 2014 federal return by April 17. Taxpayers have a three-year window to claim…

  • Virtual Income is Taxable, IRS Reminds

    Baffled by Bitcoin? In the dark over Litecoin but find Ethereum engaging? No matter what your attitude toward the use of virtual currency, the Internal Revenue Service wants you to know that there’s really only one thing to keep in mind as far as income taxes are concerned: virtual currency transactions are taxable by law…

  • IRS Unveils the “Dirty Dozen” List for 2018

    Every tax season, the Internal Revenue Service releases what it terms the “Dirty Dozen” list of top tax scams. While some of the scams listed may not change from year to year—if the bad guys find a scheme that works, they stick with it—some of the plays do change nonetheless. Here are the top 12…

  • Things to Remember About Early Withdrawals from Retirement Plans

    Somewhere between the time we start our work careers and the time we finally retire, life happens. During that time span, many taxpayers feel the need to dip into their Individual Retirement Account (IRA) or their retirement plan in order to pay expenses. But the IRS wants to remind you that making early withdrawals from…

  • $1 Billion in Refunds Still Unclaimed from 2014 Returns

    About a million taxpayers could have some cash waiting for them, provided they file their 2014 income tax returns. The IRS says unclaimed federal income tax refunds from tax year 2014 amount to over a billion dollars. To collect, taxpayers must file a 2014 tax return by the upcoming tax deadline, Tuesday, April 17. “We’re…

  • Callers to IRS Must Verify ID

    If you have to call the IRS help line on behalf of a client, you’ll need more than the client’s name and SSN. By law, IRS operators will speak only with the taxpayer or their legally designated representative. This is all part of the industry-wide push for higher levels of security. If tax pros call…